Insurer Celebrates Record Fraud Fight Results

Allianz Insurance has revealed 2019 was a record year in identifying fraudulent claims as it recouped over £65 million.

The result was an increase of £450,000 over the previous year and 8% above target. It came after the underwriter combined the teams which looked at fraudulent applications and fraudulent claims into a centralised operation.

As in 2018, motor was the most common type of fraudulent claim received by Allianz, accounting for 44% of the total. The casualty area closely followed with 39% of fraudulent claims. Casualty was a focus for the firm fraud operations in 2019 and the hope is new rules in whiplash injury claims with further the efforts for 2020 and beyond.

The dramatic weather events in 2019 provided the backdrop for the highest individual fraud saving amounted to just over £2m on a flood claim submitted on behalf of a commercial property. The claim was then found to include fabricated circumstances and misrepresentation of the business.

Allianz’s fraud manager, James Burge explained: “Fraud detection and prevention remains a priority and this was demonstrated when we brought Application Fraud together with Claims Fraud last year. The team has gone from strength to strength and I am delighted that we reached a significant amount in fraud detections and savings. In addition, we also saved an impressive £2.5m in Application Fraud which is a testament to the teams. Their continued commitment to protecting our genuine customers has led to Allianz’s savings being increased from £64.75m in 2018, to £65.2m in 2019.

“For 2020 we are hopeful that the Whiplash Reforms will go ahead this year, which will be a positive move for the industry, but we must also not become complacent. We will continue to be on the front foot and adapt and streamline our processes where necessary to keep up with the new methods fraudsters are adopting. It is essential that data is shared so that insurance companies can flag up patterns and anomalies when appropriate”.